Taxable vs. non-taxable

Books reconciliation — 1099s vs the QuickBooks ledger all tie out

Each investing entity's 1099 figures vs the live QuickBooks Online general ledger (qbo_transactions, the same source the workpapers read) — the control that catches extraction errors. A correction made in QuickBooks shows here once that year's postings are re-read. Interest is informational (the books line is entity-wide, includes loan interest).

Income by state

Capital accounts — roll-forward (K-1 Item L)

Beginning + Income − Distributions ± Other = Ending. Rows flagged Δ don't reconcile — verify the K-1 Item L boxes on the source document. incomplete = Item L beginning / ending / income not all extracted yet; income shown is the K-1 Item L current-year book income only.

Income by entity — what nets to Morgan Hale's 1040

One row per entity, and every dollar of the 2024 book appears exactly once, so the table closes on the whole year rather than on a selection of it. Income is the entity's own taxable income at 100%. MH's share is col BL, which already carries the whole ownership chain — so NWLP reads 100% (his 10% direct plus 30% via the 2012 Trust and 60% via the Gift Trust, both grantor trusts he reports), Harbor LP and Silverleaf 90%, Harbor Manager 50%. Net to MH is income he reports, not income the family owns: K-1s one family entity issues to another are counted one tier down, not twice — unless the issuer files its own return (the 613 Trust): its deals are then its income, and the K-1 it issues is the recipient's. This is an income-tax view and not the PFS — a grantor trust sits outside MH's estate and inside his income tax. Do not reconcile it to net worth.

Some filing statuses are carried from 2025, because 2024 has no filed-return row for those entities. How an entity files is a property of the entity rather than of the year, so borrowing it is better than excluding the entity — but it is weaker evidence than a row filed for 2024: an entity that changed how it files would be read on its old character. Every row that borrowed one says which year it came from, and a 2024 row always wins where one exists.

Net to MH can exceed income at 100%, and that is not an error. A share below 100% shrinks a loss as surely as it shrinks a profit, so a loss-making row that is only part-owned subtracts far less from his column than from the whole-book one. Where the year's losses sit on the partly-owned entities and its profits on the wholly-owned ones, his column ends up the higher of the two. A ~ on a share means that entity's documents carry more than one Hale %, and the figure shown is the average weighted by the size of each.

How the 1040 figure reconciles to the family total

The same arithmetic read the other way — from family money at col BL down to the part MH reports.

Hale family attribution (col BL)

Taxable income by the Hale ownership % — the same attribution used across the platform. This is family money regardless of which taxpayer files, so it includes entities that file their own returns and both sides of intra-family K-1s. It is not MH's 1040 figure; the card above is.

Which schedule each category lands on

Where this year's categories land on a return. These are whole-book totals at 100% — every document in the roll-up, no ownership % and no taxpayer gate applied — so they show which schedule carries what, not what MH reports. His figure is the 1040 card above.